The US economy is almost certainly headed back into a double dip recession, and economists aren't seeing it because they're using "the old rules of thumb" that don't apply this time, well-known economist David Rosenberg told CNBC.
Consumers' focus on shedding debt rather than spending will prevent the economy from growing and bring a halt to the recovery, said Rosenberg, a former Merrill Lynch economist who now works at Gluskin Sheff, an advisory firm based in Toronto.
"The risks of a double-dip recession—if we ever got out of the first one—are actually a lot higher than people are talking about right now," he said. "I think that it's almost a foregone conclusion, a virtual certainty."
Rosenberg has long been pessimistic on the economy, believing that persistently high unemployment , weak economic indicators and massive debt-cutting—deleveraging—by consumers and businesses will send the economy into a double dip.
Though many economists disagree with Rosenberg about the chance of another recession, his views are widely followed on Wall Street and have often been accurate.
Unemployment remains stubbornly high at 9.6 percent, while Friday's economic reports showed modest gains in retail spending and the consumer price index.Page 1 of 3 | Next Page